Hobbs AG has the following defined benefit pension plan balances on January 1, 2019.

Defined benefit obligation..........................€4,600,000

Fair value of plan assets...............................4,600,000

The discount (interest) rate applicable to the plan is 10%. On January 1, 2020, the company amends its pension agreement so that past service costs of €600,000 are created. Other data related to the pension plan are as follows.

Instructions

a. Prepare a pension worksheet for the pension plan in 2019.

b. Prepare any journal entries related to the pension plan that would be needed at December 31, 2019.

c. Prepare a pension worksheet for 2020 and any journal entries related to the pension plan as of December 31, 2020.

d. Indicate the pension-related amounts reported in the 2020 financial statements?